More property launches coming up

The property market is set to pick up steam with several new launches coming up from this weekend.

Demand for private homes has taken a hit recently following moves to curb housing loans.

But developers launching the new projects remain upbeat on the sales prospects of their units.

New private property launches are coming up fast after the end of the Hungry Ghost month.

Some 150 units at The Skywoods at Dairy Farm Road near Bukit Timah will be put up for sale this Saturday.

Its developer – Tiong Aik or TA Corporation – which has been in the Singapore property market for the past 15 years isn’t expecting sales to be brisk like in previous projects.

This is because of housing loan curbs introduced in June.

The Total Debt Servicing Ratio (TDSR) framework, which limits borrowers’ total repayments at 60 per cent of gross monthly income, means that home buyers can borrow less.

Neo Tiam Boon, CEO and executive director of TA Corporation, said: “There is still a lot of interest from investors, who want to buy, who have viewed the projects, shown interest.

“But would they be able to get a loan from the banks? And this is where the catch is. I think this cooling measure on gearing, on borrowing, has really slowed down interest in buying more units for future investment.”

Prices for the 420-unit development will average about S$1,250 per square foot.

Still, some 50 potential buyers have already signalled their interest even before prices were made known.

While more condominiums are slated to be built in the Dairy Farm Estate, TA Corporation expects three to four more Government Land Sales sites to be offered here. And this limits supply in the vicinity.

Over in the city fringes, developers of Thomson Three are also calling their 435-unit project “rare”.

Its developers, UOL Group and Singapore Land, will be launching the project in two weeks.

Early indication sets average prices to range between S$1,350 and S$1,400 per square foot.

Kam Tin Seah, senior general manager (Investment & Strategic Development), at UOL, said: “Prior to TDSR, perhaps, we would have benchmarked our price level here to somewhere more in between the freehold project that has launched in this locale, as well as the existing leasehold project that has launched in Bishan.

“We would try to position it within that level. In summary that may be around S$1,500 psf kind of level.”

Analysts expect private home sales to improve in September.

This is because of the slew of new launches.

Alan Leong, research head at Savills Singapore, said: “(In) September, we may see 1,400-1,500 new units. (In) July, there weren’t many launches. Then in August, we saw Tembusu and New Gate that will probably pump the numbers up a little bit over July.”

Private home sales plunged 73 per cent in July, with only 481 new units sold, according to latest data from the Urban Redevelopment Authority.

It is also the lowest sales volume recorded since December 2009.

Source : Channel NewsAsia – 6 Sep 2013

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